The Impact of Money Laundering on Economic and Financial Stability of Developing Country: Evidence from Bangladesh

Abstract

This study investigates the impact of money laundering on the economic and the financial stability of developing countries with a specific focused on Bangladesh. Money laundering is a serious problem for the developing countries. It harms the economy and the financial system. In this paper find that how money laundering affects the economic and financial stability of Bangladesh country with a growing financial sector. In this paper they explains how illegal money from activities corruption, crime enters the formal financial system and creates money to move out of the country reduces government income and increases the gap between rich to poor and it also creates to ricks for bank and financial institutions b making the financial system unstable and weakening trust in regulations. This paper is based on information from official reports research papers and other reliable sources. This is also findings Money laundering prevention ACT that show that although laws and policies against money laundering exist in Bangladesh. It enforcement and poor coordination among authorities reduce their effectiveness. The study of money laundering serious damages Bangladesh economic growth and financial stability. Strong law enforcement, better cooperation between institutions and greater public awareness are needed to control money laundering. Taking strong action against money laundering will help protect the financial system support sustainable development in Bangladesh.